Solar Photovoltaics Supply Chain Review Report

Series of photos depicting different energy technologies

The Solar Photovoltaics Supply Chain Review(link is external) explores the global solar photovoltaics (PV) supply chain and opportunities for developing U.S. manufacturing capacity. The assessment concludes that, with significant financial support and incentives from the U.S. government as well as strategic actions focused on workforce, manufacturing, human rights, and trade, America could reestablish a robust domestic solar manufacturing supply chain and become a competitive leader in a global solar industry. This could lead to tremendous benefits for the climate as well as for U.S. workers, employers, and the economy.

To achieve the Biden Administration’s goal of 100% clean electricity by 2035, solar energy would need to grow from 4% of electricity supply today to 40%, dramatically increasing demand for solar modules and components. This rapid expansion of solar energy has the potential to yield broad benefits in the form of economic activity, improved public health, and workforce development.

Produced by the U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) with support from the National Renewable Energy Laboratory (NREL) and released on February 24, 2022, this is one of a series of energy sector industrial reports directed through President Biden’s Executive Order 14017 “America’s Supply Chains.”(link is external) The Executive Order will help the U.S. federal government to build more secure and diverse U.S. energy supply chains – facilitating greater domestic production, an acceleration in clean energy, a range of supply, built-in redundancies, adequate stockpiles, safe and secure digital networks, and a world-class American manufacturing base and workforce.

Key Findings

  • Developing U.S. PV manufacturing could mitigate global supply chain challenges and lead to tremendous benefits for the climate as well as for U.S. workers, employers, and the economy.
  • The solar supply chain is global and reliant on products from China or companies with close ties to China, a country with documented human rights violations and an unpredictable trade relationship with the United States.
  • Significant growth in U.S. manufacturing across the supply chain is possible with incentives that offset the higher cost of manufacturing in the United States.
  • Existing polysilicon production facilities are currently idle or supplying polysilicon to other industries. Expansion in the ingot and wafer sectors outside of China would create demand for existing U.S. polysilicon producers to run at high capacity.
  • The United States can expand production of thin-film modules, which do not rely on obtaining materials from Chinese companies. The thin film supply chain is concentrated in Ohio.

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